Austin continues to see sales activity supporting the notion that Austin is headed toward a seller’s market. There are 4 key indicators of a tightening market – Number of Homes Sold, Active Listings, Average and Median Sales Prices, and Average Days on Market.
All four of these indicators are moving in the direction of a tightening market. Let’s take a closer look.
Number of Homes Sold
August 2005 = 2759
August 2004 = 2150
This is a year over year increase of 28%
August 2005 = 8302
August 2004 = 9824
This is a year over year decrease of 16%, meaning there are fewer homes on the market for buyers to choose from. This while the number of sales is increasing.
Average and Median Sales Price
August 2005 Average Sales = $217,782 (+6.2%)
August 2004 Average Sales = $205,073
August 2005 Median Sales = $169,620 (+8.6%)
August 2004 Median Sales = $155,000
To get a real sense of how flat our market has been since 2002, look at the chart below and you’ll see that August 2003 and 2004 average and median real estate sales in Austin were both below the 2002 levels. So 2005, as an increase over 2002, is not as great as the jump we now see from 2004. In fact, from 2002 to 2005, the average sales price in Austin has increased a paltry 3.9% total, so prices are really just starting to climb out of a two year dip..
Average Days on Market
August 2005 = 67
August 2004 = 70
Not a huge drop, but moving in the right direction nonetheless.
If these four indicators continue to move in the directions seen above, by next summer, if not sooner, Austin should be at or approaching a seller’s market, which in turn will mean higher prices. Feel free to call me at 512-301-5811 if you have any questions about Austin’s real estate market.